Fate of GM and Chrysler in the balance as deadline for loan restructuring looms
Sunday 15 February 2009
Bondholders with the fate of General Motors in their hands are playing a game of brinkmanship with Barack Obama ahead of a restructuring deadline this week.
The carmaker's creditors are betting the President will not allow the company to fall into bankruptcy. They believe they can win additional concessions before accepting equity in return for a haircut on their $27.5bn (£19.2bn) in unsecured debt.
General Motors and Chrysler are being propped up by billions of dollars from US taxpayers. The loans can be called in if the companies don't present their plans for long-term viability.
GM has tried to persuade bondholders to accept a 70 per cent reduction in their holding and to turn some of their investment into shares, but hopes of a deal have been frequently dashed. Chrysler, the weaker of the two, is not now expected to tie up a partnership deal with Italy's Fiat in time for the Tuesday deadline, and will have to present an alternative plan.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 What happens to your body when you give up sugar?
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway in dense fog
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Turkish Airlines flight TK 726 crash-lands on Nepal runway in dense fog
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, photographer claims
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...